Not only the correct way but the only way.The "correct" way to repair that would be to drill and tap to install a Helicoil and use the original 5/16 bolt.
Kevin
I believe you are removing more material drilling the helicoil, if I remember right. Thats why I tapped for 3/8ths.
I think pan bolts are 5/16ths. Inspection bolts are 1/4. I would have to go out and verify. I believe a 5/16ths helicoil hole is the same as a 3/8x16 bolt. Either way, like Commando said, threads in Aluminum, WTF.